Over the past year I have spoken to a few different companies that provide warehouse lines for reverse mortgage production, but I haven’t seen any lenders really advertise it. Not that I really blame them because it adds a huge layer of risk to fund a product like reverse mortgages that are so new and constantly changing. Here are just a few that I thought I would share with everyone.
The first is Sun West Mortgage, Inc. who is based out of Cerritos, CA. They do have a link to their website about warehouse lines and if you don’t mind providing your contact information you can download a copy of their application. One of their sales reps contacted me a few days ago and it seems like they are allowing a few different methods of delivery for reverse mortgage production. I’ve also been told that Generation Mortgage is willing to offer their customers access to a warehouse line if the production volume meets a certain limit, but I wasn’t able to find anything on the website confirming it. The third and last company that I have come across is First Collateral which is owned by Citigroup. I spoke with one of their account reps and they don’t have a large amount of customers that are using their lines for reverse mortgage production but they’re welcome to new clients that can provide substantial volume.
It’s no secret that there are a lot of mortgage brokers out there who really want to obtain a warehouse line. From my experience as a wholesale account executive most mortgage brokers look at a warehouse line as something “sexy” that they can tell all their AE’s and friends about to make themselves come off as a “big mortgage banker”. In my opinion warehouse lines can be a great addition to someone’s business if it can be managed correctly, because it provides control over the entire mortgage process. However, with all of the companies as of late that have had to repurchase loans from investors I wouldn’t think a lot of mortgage brokers are looking to get into funding their own loans… but I could be wrong. I’d love to get some comments on using a warehouse line to fund reverse mortgage production if anyone has any.
I hope everyone had a great weekend… the weather was beautiful here in Chicago.